Fortunately for growth investors, the Australian share market is home to a number of companies growing at a very quick rate.
Two ASX growth shares that have been tipped as buys for growth investors are listed below. Here's what you need to know about them:
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Altium Limited (ASX: ALU)
The first growth share to look at is Altium. It is the printed circuit board (PCB) design software provider behind the Altium Designer and cloud-based Altium 365 platforms. The company also has a number of smaller businesses with promise such as Octopart. This is a search engine for electronic parts.
Altium has been growing at a strong rate over the last few years thanks to its exposure to the Internet of Things and artificial intelligence booms. These markets are underpinning exceptionally strong demand for electronic design software and are expected to continue growing strongly for a long time to come. This bodes well for Altium in the 2020s.
Analysts at Morgan Stanley are confident on its future. They have an overweight rating and $40.00 price target on the company's shares.
Kogan.com Ltd (ASX: KGN)
Another growth share to look at is Kogan. It is a growing ecommerce company which has benefited greatly from the pandemic accelerating the shift to online shopping.
This has underpinned significant customer, sales, and earnings growth in FY 2020 and has even continued in the new financial year despite bricks and mortar stores reopening largely as normal.
In November, Kogan revealed that its gross sales for the first four months of FY 2021 were up 99.8% on the prior corresponding period. Pleasingly, its earnings have been growing even quicker thanks to margin expansion. This led to gross profit growth of 131.7% and earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 268.8% for the four months.
This growth looks set to be given a boost in the second half from the acquisition of New Zealand-based online retailer Mighty Ape for $122.4 million.
Credit Suisse is a fan of Kogan and has an outperform rating and $20.60 price target on its shares.
